Is OpenAI about to unleash the AI revolution?
Welcome to AI Collision 💥,
In today’s collision between AI and our world:
- Wait, AI can write its own software now?
- With WBD and PARA in the toilet, is now the time to buy?
- No polls (for now) so we’re stripping it back
If that’s enough to get the AI self-replicating, read on…
AI Collision 💥
2025 is going to bring a competing set of investment mega trends that you simply cannot ignore.
If you thought 2024 was going to be nuts, then the first 20 days of 2025 prove that the potential rewards on offer this year are going to come (and I’m going to an Aussie-ish phrase here) flat-knacker.
In a moment, I want to dive right into what that looks like from an AI perspective. But I simply cannot write this without mentioning the President Donald Trump memecoin fiasco over the weekend.
In short, Trump launched a crypto memecoin that rose in value to $75 billion. Then Melania Trump launched her own memecoin, crashing the value of his. Meanwhile, Eric and Donald Jr are pumping hype behind the family’s World Liberty Financial “DeFi” offering.
I feel like I’ve aged five years in about 48 hours.
Nonetheless, and wild as that might sound, there’s a very strong case that what you’re seeing unfold right now is the single biggest market catalyst for bitcoin and a whole set of other hand-selected crypto that we’ve ever seen.
It’s a market where guidance is needed, where care must be taken and where flat-knacker gains are there for the taking (with a very healthy dose of risk I might add). But you will hear more on this from me in the coming days because what Trump is doing right now is a one-off.
There’s no one else like him – and none will likely come close to having the same aura he possesses again. And I think the first 100 days of his presidency will light a match under the crypto markets, and the AI markets.
Which leads me to how quickly things are changing in AI too.
Have you ever seen such a definitive political statement from such a powerful and important company, not just in the US, but the world, as this?
This is a two-prong attack. One is directly at the outgoing establishment. The other a statement of support for the incoming one – but with a warning that if things aren’t to the liking of this tech giant, it won’t be afraid to step up and shake things up.
Nvidia knows the position of power it’s in. If the situation is not good for Nvidia, then watch out. As great as it is, there’s a ruthlessness in this that we’ve not seen from Nvidia before. This also reinforces my view that it may be the most important company in the history of mankind.
That’s because without Nvidia, a company like OpenAI doesn’t get near to where they are now, which is on the verge of releasing PHD-level AI agents into the world.
In fact, there are an increasing number of rumours swirling around that OpenAI may have already cracked artificial general intelligence (AGI) which is the ability to perform any task equal to that of humans.
Just the other day at tech event CES, it was seen that AI is already at the point of writing its own software. That means it will run faster on GPUs, moving data centres towards what’s known as “AI factories”.
It’s these AI factories that take a whole host of company proprietary data and then start to expand the model to allow for huge productivity gains and economic growth. Or to put it more bluntly, AI is moving the world to the brink of a new industrial revolution… I guess we have no choice but to call it the AI revolution.
With every conceivable economy on earth looking for economic growth engines, AI is right there for the taking. In the coming weeks, expect big infrastructure bills in the US to grow, invest and scale up AI (and crypto). We’ve seen what the UK has planned with its AI plan to plan for more planning change.
Now you can invest directly in the companies driving this – like Nvidia, Meta, Taiwan Semiconductor, AMD, Arm, Broadcom and Palantir. We’ve written about many of them before.
But we also know that it can be confusing to some and not always practical to invest in so many companies. That’s why you can also look to ETFs that are in this space to lean into AI investing opportunities.
They cover everything now from robotics to self-driving cars, to AI and semiconductors. The list is growing and there are some great options out there.
But I’ll save that for our next edition of AI Collision so we can help you to find your right path into this AI revolution as it unfolds.
Don’t miss it!
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AI gone wild 🤪
At first, it’s just a two-minute speech, then it’s major parts of dialogue. Then it’s an entire actor. Then an entire movie.
AI in Hollywood is the future of film making. Considering the US film and video production and distribution industry is worth near $100 billion, it’s fair to see that a chance to maximise profit margins will be gladly welcomed…
Or at least you’d think that’s the case.
We wrote to you on 19 November about how Ben Affleck could see what was coming with AI in Hollywood and why it wasn’t necessarily a bad thing.
His words have lived in my mind ever since. Last night I was watching Kindergarten Cop (the Arnold Schwarzenegger movie) and was thinking to myself, there’s no way this movie would get made today. Even though it grossed $202 million worldwide on a $26 million budget, no one in Hollywood is making a movie about a homicide detective becoming a kindergarten teacher to catch a major drug dealer.
Today that’s a straight to Netflix movie, if it gets made at all. But if the cost to produce is slashed, and that movie costs $2 million to make instead of $20 million, then the return on investment equation changes.
That only happens with AI though.
For now, however, the pushback on this idea is real. It’s recently come to light that the Adrien Brody film The Brutalist used AI for a two-minute section of the film to ensure Brody’s dialogue was pronunciation-correct for a section where he needs to speak in Hungarian.
They used an AI program called Respeecher to change the dialogue. I see nothing wrong with this. In fact, I think this ends up being a good thing for the likes of Warner Bros. Discovery (NASDAQ:WBD) and Paramount Global (NASDAQ:PARA). These companies skyrocketed during Covid (everyone was staying at home watching their movies and streaming services) but have since tanked around 70%.
Perhaps the age of AI is a godsend for the listed film studios. A chance for them to reinvent their profit margins and to adopt new technology that helps them to grow again. And even though they’re trading at rock-bottom prices, perhaps they’re now more attractive for investment than they’ve been for years.
Boomers & Busters 💰
AI and AI-related stocks moving and shaking up the markets this week. (All performance data below over the rolling week).
Boom 📈
- Vicarious Surgical (NYSE:RBOT) up 27%
- BigBear.ai (NYSE:BBAI) up 20%
- SK Hynix (KOR:A000660) up 10%
Bust 📉
- iRobot (NASDAQ:IRBT) down 15%
- Predictive Oncology (NASDAQ:POAI) down 11%
- Veritone (NASDAQ:VERI) down 8%
From the hive mind 🧠
- The following is a good question which speaks volumes to what AI is good at (data crunching) and what humans are good at (unpredictability). Namely, when you apply AI to sports betting, can it factor in enough data to overcome the human factor?
- I feel like my answer here would be a resounding NO. I think I’d rather my five- and three-year-olds had the choice here rather than AI.
- Our very first post here at AI Collision back in late 2023 was on the intersection of AI and mining. Specifically, BHP and AI in their mines. Well, here we are in January 2025 and BHP is still going strong with AI and explaining how it’s driving copper demand.
Artificial Polltelligence 🗳️
Was it a case of the outgoing establishment doing all they can to sabotage our work? Or was it just the proverbial gremlins in the system? Or had AGI finally taken over?
Why are our polls not working!!??!!
Well, truth be told, the polling section of this site runs through an add-on app called Crowdsignal. And because you’re so good at voting in our apps, we’ve reached the limit of “signals” allowed for our account.
I had no idea this was even a thing. Which means until we upgrade the account (sometime this week) the polling section here will be temporarily unavailable.
Instead, I call upon all opinions and comments until the polls are live again. And a far more rudimentary voting system a thumbs up and thumbs down…
What’s going to happen to the stock market when Trump takes office and he can finally put his plans into place?
Weirdest AI image of the day
ChatGPT’s random quote of the day
Technological progress has merely provided us with more efficient means for going backward.
— Aldous Huxley
Thanks for reading, and don’t forget to leave comments and questions below,
Sam Volkering
Editor-in-Chief
AI Collision
Hi Sam,
The stock market will rise, hopefully a lot 🙂
Hi Sam,
Stock market will rise in my view.
If American non Electrical (EV) products cannot be sold in the UK will that attract tariffs on UK exports to the USA?
Hi Sam, I believe the stock market in the US will rise in the short term but you can only ignore the vast debts for so long – so be prepared for a downturn eventually.
Hi Sam, the initial reaction will be a rise in the market as deregulation and lower taxes boost animal spirits. However be afraid of the bond market and Dollar strength. Rising yields are providing a double whammy to the ponderous level of debt. Inflationary forces will make it very hard for the FED to cut into rising bond yields. History tells us that this is a forewarning of lower growth and ultimately recession.
The UK stock market has been fantastically resilient despite bond yields rising pushing up borrowing costs. This appears to be offset for the moment by companies slashing their costs by lowering headcounts and raising prices. However the storm clouds are gathering with higher taxation, higher energy prices, higher wage demands and the government wanting to use the private sector as its own cash cow/ piggy bank.
Desperately fudging the economic figures to show 0.1 percent growth when a growing number of people can see we are in recession and the coming tax increases will bite companies and individuals hard. With increasing amounts of money being siphoned out of the economy we are heading into stagflation.
I expect business failures to increase, job losses, a shrinking economy and a turbulent UK stock market with some sizeable falls in certain sectors. The gap between the UK and the USA will continue to widen with greater economic growth and entrepreneurialism whilst we tax and stagnate.